Nano-X Imaging (NNOX) Q1 2025 Earnings Call May 22, 2025 08:30 AM ET Company Participants Mike Cavanaugh - Managing DirectorErez Meltzer - CEO & Acting Chairman of the BoardRan Daniel - Chief Financial OfficerJeffrey Cohen - MD - Equity Research Conference Call Participants Ross Osborn - Director, Lead Research Analyst - MedTech and DiagnosticsScott Henry - Managing Director & Senior Research Analyst Operator Good day, and thank you for standing by. Welcome to the Nano QX Q1 twenty twenty five Earnings Conf ...

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $13.2 million for Q1 2025, compared to a net loss of $12.2 million in Q1 2024, reflecting an increase of $1 million largely due to a $1.1 million increase in gross loss [27] - Revenue for Q1 2025 was $2.8 million, with a gross loss of $3 million, compared to revenue of $2.6 million and a gross loss of $2.1 million in the same period last year [27][28] - Non-GAAP gross loss for Q1 2025 was $400,000, down from a gross profit of $600,000 in Q1 2024, indicating a gross margin of approximately 15% for the reported period [28] Business Line Data and Key Metrics Changes - Revenue from teleradiology services for Q1 2025 was $2.6 million, with a gross profit of $400,000, compared to $2.4 million and a gross profit of $300,000 in Q1 2024, representing a gross profit margin of approximately 17% [28] - Revenue from imaging systems and OEM services was $33,000 with a gross loss of $1.6 million in Q1 2025, compared to revenue of $47,000 and a gross loss of $400,000 in the same period last year [29] - Revenue from AI solutions was $200,000 with a gross loss of $1.9 million in Q1 2025, compared to $100,000 and a gross loss of $2 million in Q1 2024 [29] Market Data and Key Metrics Changes - The sales pipeline has doubled since January 2025, with the sales team handling over 1,000 leads, primarily from small and medium-sized health clinics in various countries [9] - The company is targeting over 100 ARC systems in various stages of deployment by the end of 2025, with over 60 units currently in various stages of implementation [10][11] Company Strategy and Development Direction - The company aims to improve medical imaging and enhance patient outcomes through strategic acquisitions and the integration of AI-powered imaging analysis [6][7] - The focus is on expanding the commercialization of Nanox ARC and AI solutions, with a multi-pronged strategy involving direct sales, collaborations, and distributor engagements [8][12] - The company is also pursuing opportunities in the workers' compensation segment, which presents a significant potential market [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged recent market uncertainties but expressed optimism about the growing base of early adopters for Nanox ARC [11] - The company expects its AI business to break even by 2026 and the ARC business to reach breakeven by 2027, with an anticipated inflection point in the second half of 2025 [57][58] Other Important Information - The company has received FDA clearance for the Nanox Arc X, enhancing its regulatory standing [20] - The company is actively engaged in clinical trials to generate data supporting the use of Nanox Arc, which is crucial for future growth [21] Q&A Session Summary Question: Can you provide details on the fleet deployment by the end of the year? - Management indicated that the majority of units will be in the US, with about 15-20% in Europe and 10% in other regions, depending on regulatory approvals [38] Question: What is the pricing and reimbursement status for the second opinion services? - The second opinion service is priced at approximately $300 and is primarily a retail model, with growing business potential [42] Question: How many units are currently deployed and operational in the US? - More than 20 units are currently installed, with some awaiting regulatory approvals [47] Question: What is the timeline for reaching breakeven across business lines? - The teleradiology division is already profitable, while the AI business is expected to break even in 2026 and the ARC business in 2027 [56][57]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $14.1 million for Q4 2024, compared to a net loss of $10.2 million in Q4 2023, primarily due to an increase in gross loss and other expenses [48] - Revenue for the reported period was $3.0 million, with a gross loss of $2.9 million, compared to revenue of $2.4 million and a gross loss of $1.7 million in the comparable period [49] - Non-GAAP gross loss for the reported period was $0.3 million, compared to a gross profit of $0.9 million in the comparable period, indicating a significant decline in gross profit margin [49][50] Business Line Data and Key Metrics Changes - Revenue from teleradiology services was $2.8 million with a gross profit of $0.6 million, up from $2.3 million and a gross profit of $0.3 million in the comparable period, reflecting improved gross profit margins [50][51] - Revenue from the sale and deployment of imaging systems amounted to $136,000, with a gross loss of $1.5 million, compared to revenue of $17,000 and a gross loss of $44,000 in the comparable period [52] - Revenue from AI solutions was $83,000 with a gross loss of $2.0 million, consistent with the previous period, indicating challenges in this segment [52] Market Data and Key Metrics Changes - The company is expanding its market presence in the U.S. and Europe, having received FDA clearance and CE mark certification, which are expected to enhance commercialization efforts [10][24] - The company has added Tennessee to its commercial coverage in the U.S. and is negotiating with new channel partners to accelerate market presence [11][19] - The company anticipates that initial sales in the EU will primarily be through a CAPEX model, with additional revenue from service contracts and AI solutions [28][29] Company Strategy and Development Direction - The company aims to accelerate the deployment of its imaging systems and AI solutions in the U.S. while expanding into the European market following regulatory approvals [17][30] - The focus remains on building a strong network of strategic partnerships and channel partners to enhance market penetration [22][30] - The company is committed to generating clinical validation and raising awareness of its technology among healthcare professionals [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growing interest from healthcare facilities and the potential for increased referrals and scans as the technology gains traction [20][21] - The company views 2025 as a pivotal year for growth, particularly in AI solutions and imaging systems, as it continues to build its sales and clinical support teams [92][106] - Management highlighted the importance of clinical validation and market education in driving adoption of their technology [26][106] Other Important Information - The company had cash and marketable securities of approximately $83.5 million as of December 31, 2024, providing a solid financial foundation for ongoing operations [54] - The company issued approximately 5 million ordinary shares during the reported period, raising gross proceeds of $38.8 million [56] Q&A Session Summary Question: Can you elaborate on the DME partners in the U.S.? - Management confirmed that there are options for both direct CAPEX sales and typical MSAS models for DME partners [63] Question: Can you provide insights on the U.S. market and expected placements in 2025? - Management indicated that the team is expanding rapidly and that early adopters are primarily small to medium-sized medical imaging centers and orthopedic clinics [66][70] Question: How many systems were deployed in the U.S. during the quarter? - Management refrained from providing exact numbers but noted that installations are in various stages and that the pipeline remains robust [78] Question: What is the pricing strategy for ARC in Europe? - Management stated that the majority of sales in Europe will be through CAPEX, with installations expected to begin in the next two quarters [80][83] Question: What is the outlook for 2025? - Management did not provide specific guidance but indicated that 2025 is expected to be a strong year for AI and imaging solutions [92][106] Question: Can you discuss the capital raised and its deployment? - Management confirmed that approximately $38 million was raised, which will be used to accelerate commercialization efforts for both imaging and AI products [104][105]

Nano-X Imaging Ltd. (NASDAQ:NNOX) Q4 2024 Earnings Conference Call March 31, 2025 8:30 AM ET Company Participants Mike Cavanaugh - Investor Relations Erez Meltzer - Chief Executive Officer and Acting Chairman Ran Daniel - Chief Financial Officer Conference Call Participants Jeffrey Cohen - Ladenburg Thalmann Ross Osborn - Cantor Fitzgerald Scott Henry - Alliance Global Partners Jason Colbert - DeBoro Capital Operator Good day and thank you for standing by. Welcome to the Nano-X Fourth Quarter 2024 Earnings ...